Bitcoin miners use an estimated 348 terawatt-hours of electricity per year, and electricity usage is increasing globally. Transition to renewable energysome people may ask, where exactly does Bitcoin get its power from?
To answer that question, Chris Deckert of Visual Capitalist partnered with hive digital Visualize data from the Cambridge Center for Alternative Finance and Ember, a climate-oriented energy think tank, to explore the power configuration of the Bitcoin network.
This is part 1 of “How is Bitcoin environmentally friendly?” A series examining the sustainability of cryptocurrencies.
The world told by Bitcoin
The top 10 countries for Bitcoin mining are: 93.8% of the entire network by hashrateThis is a measure of numeracy ability, with the United States, China, and Kazakhstan occupying the top three positions. At the end of 2021, these three countries together hosted almost three-quarters of the network.
China once boasted the top spot in Bitcoin mining, but Up to 75% of global capacityHowever, due to the crackdown in summer 2021, that share fell to zero in just a few months.Many miners relocated nearby Kazakhstan, some were attracted by cheap electricity, loose regulation, and a “stable” political climate, while others chose the United States. Now that the situation has subsided, large-scale secret mining sites have surfaced in China as well.
Rounding out the top 10 are Ireland, Singapore, and Thailand, which together account for 4.9% of the network. Ireland’s reported share, which also applies to Germany in sixth place, is believed to be a gross exaggeration caused by miners from other countries. hide real location.
The role of renewable energy
in national base, the share of renewable energy in the United States, China, and Kazakhstan was 22.5%, 30.2%, and 11.3%, respectively.For context, renewable energy 30% of the world’s electricity generation In 2022 (does not include nuclear power).
Kazakhstan’s dismal renewable energy share is due to its high dependence on coal (60%). Main export products Country in Central Asia. At the same time, coal accounts for a similar amount of electricity in China (61%), but the overall renewable energy share is higher due to the ferocious expansion of wind and solar power.
Where Bitcoin miners set up their rigs matters. Because it’s mobile, unlike many other industries that have factories or large headquarters (Google’Bitcoin mining shipping container(If you need some convincing).
Where they put their roofs will be determined based on things like regulatory regimes, electricity rates, and average outdoor temperatures since Bitcoin rigs generate a lot of heat. Regarding the last point, the top 10 are broken down by average annual temperature as follows:
But as climate change drives the transition to renewable energy, many Bitcoin miners are taking a closer look at where their electricity comes from.This may be the reason CanadaHydropower has an embarrassing wealth, rising from less than 1 percent of the network in 2019 to 6.5 percent at the end of 2021.
However, there is still plenty of room for growth, given that top renewable energy countries such as Iceland, Paraguay and Norway collectively host just over 1% of the global network.
Posted by: Zerohedge.com
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